Greenlight Capital, an investment management firm, released its first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Greenlight Capital funds returned 4.9% net of fees and expenses, compared to 10.6% for the S&P 500 index. The year’s first quarter saw a bullish market, with investors focusing on AI, cryptocurrency, and meme stocks. Despite the market’s strong performance, the long and short portfolios didn’t fare as well. The long portfolio only saw a modest increase of 2.2%, net of fees and expenses, while the single-name short portfolio broke even. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Greenlight Capital featured stocks like Roivant Sciences Ltd. (NASDAQ:ROIV) in the first quarter 2024 investor letter. Headquartered in London, the United Kingdom, Roivant Sciences Ltd. (NASDAQ:ROIV) is a commercial-stage biopharmaceutical company. On May 7, 2024, Roivant Sciences Ltd. (NASDAQ:ROIV) stock closed at $11.38 per share. One-month return of Roivant Sciences Ltd. (NASDAQ:ROIV) was -0.26%, and its shares gained 21.45% of their value over the last 52 weeks. Roivant Sciences Ltd. (NASDAQ:ROIV) has a market capitalization of $9.171 billion.
Greenlight Capital stated the following regarding Roivant Sciences Ltd. (NASDAQ:ROIV) in its first quarter 2024 investor letter:
“We established a small long position in Roivant Sciences Ltd. (NASDAQ:ROIV). ROIV is a biotech company focused primarily on inflammation and immunology therapies. In addition to an exciting pipeline, ROIV has a strong track record of positive trial results and successful monetization of pharmaceutical assets. The market currently believes core ROIV is effectively worthless, as the company has a market capitalization of about $9 billion, but holds over $6 billion of net cash and a $2.6 billion stake in its publicly traded subsidiary, Immunovant (IMVT). We believe there are several valuable assets inside the company, notably a broad patent estate around lipid nanoparticles used in COVID vaccines for which Moderna and Pfizer may owe ROIV several billion dollars in royalties, a potential multi-billion-dollar specialty autoimmune disease drug that recently passed its 7th successful Phase 2 trial and a novel topical agent to treat skin conditions such as psoriasis and atopic dermatitis. Additionally, we believe there are several other promising earlier stage assets inside ROIV. Lastly, the management team continues to find new opportunities to in-license from larger pharmaceutical companies. ROIV recently announced a $1.5 billion share repurchase program. We acquired our shares at an average price of $10.96. ROIV ended the quarter at $10.54.”
A research scientist in a lab coat examining a sample of blood for sickle cell diseases.
Roivant Sciences Ltd. (NASDAQ:ROIV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Roivant Sciences Ltd. (NASDAQ:ROIV) at the end of the fourth quarter which was 44 in the previous quarter.
We previously discussed Roivant Sciences Ltd. (NASDAQ:ROIV) in another article, where we shared the list of most undervalued stocks to buy that are trading under $20. Another investment management company Tourlite Capital Management added Roivant Sciences Ltd. (NASDAQ:ROIV) in the last quarter and shared its expectations about the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
